Convertible ARM

Back to Glossary

Convertible ARM

Updated

January 19, 2023

A convertible ARM is an adjustable-rate mortgage (ARM) that allows the borrower to convert to a fixed-rate mortgage after a set time period. Convertible ARMs are typically offered as a method to capitalize on dropping interest rates and have specified criteria.

Cumulative Interest

Creditworthiness

Convertibility Clause

Conventional Loan

Contractual Payment: Home Equity Line of Credit

Related Topics

When Is the First Mortgage Payment Due?

What Does Foreclosure Mean?

What Is a HELOC Loan?

Loan Default

Financial Considerations (For First-Time Home Buyers)

Mortgage Loan Types

Payment and Debt Ratios

Home Value: Appraised, Estimated, Actual